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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

InsightSquared

More SaaS + Software Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

More Growth Strategy Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Software and online services are in a period of dizzying growth

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

Three uses for the SaaS Guidelines

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

More than 1/2 of SAAS companies increased their spending on customer retention last year

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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